Find out the average accounting rate


Penelope's Paintings is purchasing a set of frames which cost $112,000. These frames will be depreciated on straight line basis to a zero book value over their eight year life. This set of frames is anticipated to generate net income of $17,000 a year for first four years and $9,000 a year for the last four years. Find out the average accounting rate of return?

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Finance Basics: Find out the average accounting rate
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